. How Total Return Swaps Work, With Examples What is the formula for total return? The formula for total return is as follows: Total return = (ending value – beginning value) + dividends where: ending value = the current market value of the investment beginning value = the original cost of the investment dividends = … Read more
A structured investment vehicle (SIV) is a type of investment fund that is used to pool together funds from multiple investors in order to invest in a portfolio of assets. The assets in the portfolio are typically high-yielding, but also high-risk, such as subprime mortgages. SIVs are typically managed by investment banks or other financial … Read more
The term “fade definition” refers to a type of trading strategy that involves short selling a security when it begins to decline in value, in the hope of profiting from a further decline. The strategy is often used by traders who believe that a security’s price has been artificially inflated and is due for a … Read more
The term “average up” refers to a trading strategy whereby an investor buys additional units of a security that has fallen in price, in an attempt to lower their overall cost basis. This strategy is often employed by investors who are confident in the long-term prospects of the security, and believe that the current price … Read more
Forward points are the number of pips between the spot price and the forward price of a currency pair. A forward points definition can be found in most online forex trading platforms and in the Metatrader 4 platform under the “Navigator” window. The number of pips between the spot and forward price is what is … Read more
An inter-dealer broker (IDB) is a type of financial broker that facilitates transactions between financial institutions. IDBs are typically used in the over-the-counter (OTC) markets, where they play an important role in providing liquidity and helping to match buyers and sellers. IDBs typically charge a commission for their services. The term “inter-dealer broker” is used … Read more
Cboe Global Markets (Cboe) VIX of VIX (VVIX) Definition VVIX is a volatility index that measures the expected volatility of the CBOE Volatility Index (VIX). VVIX is calculated by taking the square root of the sum of the squares of the VIX call and put options’ implied volatilities. Can you buy VVIX? The VVIX is … Read more
